Paying for higher education, whether in India or abroad, can be overwhelming when tuition, travel, and living costs continue to rise every year. In fact, a NABARD loan report highlights that education loans up to ₹4 lakh are generally collateral-free but carry the highest default rates in the retail loan segment.
The Avanse Finance Education Loan is designed to solve this problem by offering up to 100% financing of academic expenses with flexible repayment options.
As a specialised NBFC focused only on education, Avanse Financial Services has supported 3 lakh+ students across 50 countries and partnered with 1,650+ institutions worldwide. With loan sanctions in as little as 3 days, unsecured options up to ₹1.25 crore, and interest rates starting around 10%, Avanse has become one of the most trusted education loan providers in India.
Avanse Education Loan Overview
Here’s a quick snapshot of the key features, eligibility, and benefits of Avanse Finance Education Loan to help you evaluate your options at a glance.
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Types of Avanse Education Loans
Avanse Financial Services offers different loan products to meet the needs of students pursuing higher studies in India or abroad, as well as institutions in the education sector. Here’s a detailed breakdown:
1. International Education Loan
Designed for students aspiring to study overseas across 46+ countries.
What it Covers:
- Tuition and hostel fees (paid directly to the institution)
- Living expenses up to 75% (sent to co-borrower)
- Travel costs up to ₹75,000
- Learning resources like books, laptops, and other academic expenses
Key Highlights:
- Loan amount: ₹1 lakh onwards, no fixed upper cap (depends on eligibility & collateral)
- Interest rate: 10% – 16.5% (floating)
- Repayment tenure: up to 17 years (including moratorium)
- Grace period: 6 months post-course or 3 months after employment
- Quick approval: As fast as three working days
- Repayment flexibility: EMI during/after course, step-up EMIs, or partial interest payments during study
2. Domestic Education Loan
For students studying in India, covering both traditional degrees and short-term learning programs.
Loan Variants:
1. Study in India Loan
For AICTE/UGC-approved undergraduate, postgraduate, and professional programs (engineering, MBA, law, medicine, etc.).
2. Short-Term Loan
Up to ₹3 lakh for school fees, coaching classes, or tutoring. Fixed processing fee (₹999) and zero prepayment charges.
3. Skill Enhancement Loan
Covers certification, vocational, or upskilling courses. Repayment in 3–36 months with some no-cost EMI options.
4. Executive Education Loan
Tailored for professionals pursuing MBAs, management certifications, or postgraduate courses in India/abroad.
3. Institutional Loans
Avanse study loan also provides funding for schools, colleges, coaching centres, and training institutes. While not directly for students, these loans aim to strengthen the education infrastructure.
Types Offered:
1. Secured Loans: Up to ₹5 crore for expansion, land purchase, or tech upgrades.
2. Unsecured Loans: Up to ₹50 lakh for working capital requirements.
Wondering whether you should choose a secured or unsecured loan? Learn the key differences in our guide on secured vs unsecured education loans.
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Eligibility Criteria for Avanse Finance Education Loan
Avanse defines different eligibility criteria for students, co-borrowers, and international education loan applicants.
Eligibility for Students
1. Must be an Indian citizen
2. Age: 18 years or above
3. Must have a confirmed admission offer before final loan disbursal
4. Can apply for:
- Graduate & postgraduate programs
- Job-oriented professional/technical courses (engineering, MBA, medicine, law, aviation, etc.)
- Vocational, executive, or skill-based programs (subject to Avanse approval)
Eligibility for Co-Borrowers
1. Must be an Indian citizen
2. Relationship: Parent, legal guardian, sibling, or close blood relative
3. Must have a stable income in India
4. Must hold an active Indian bank account (with cheque-signing ability)
5. Treated as the primary debtor (responsible for repayment if the student defaults)
Eligibility for International Education Loan Applicants
1. Must fulfil all student and co-borrower requirements (as above)
2. Course type:
- Graduate or postgraduate programs abroad
- Job-oriented professional/technical courses in foreign universities
3. Institute: Must be approved by Avanse.
4. A co-borrower with an Indian income is mandatory for foreign education loans.
Looking for financing without pledging assets? Explore how you can get an education loan without collateral.
Documents Required for Avanse Education Loan
When applying for an Avanse education loan, you’ll need to provide documents depending on whether you are the student applicant, co-applicant, guarantor, or providing collateral. Below is a clear breakdown:
1. Student Applicant
1. 2 passport-sized photographs
2. Valid photo ID (Aadhaar, Passport, Voter ID, or Driving License)
3. Proof of residence
4. Date of birth proof (Birth certificate, Passport, Aadhaar, etc.)
5. Signature verification (PAN card, Passport, or bank-attested document)
6. Academic records (mark sheets, certificates, transcripts)
7. Proof of admission (admission/offer letter)
8. Detailed fee structure from the institution
2. Co-Applicant (Parent/Guardian/Relative)
1. 2 passport-sized photographs
2. Valid photo ID & residence proof
3. Date of birth proof
4. Proof of relationship with the applicant
5. Signature verification document
6. Income proof (Salary slips, ITR, Form 16, business income docs if self-employed)
7. Last 8 months’ bank statements
3. Additional Co-Applicant / Guarantor (If Applicable)
1. Photo ID and residence proof
2. Date of birth proof
3. Signature verification
4. Relationship proof with the applicant
5. Income proof & bank statements
4. Collateral Documents (If Applicable)
For secured education loans, Avanse requires collateral papers such as:
1. Property documents (title deed, tax receipts, NOC if applicable)
2. Insurance papers
3. Fixed deposit receipts (if FD is used as security)
If you wish to apply for a new loan, you can reach out to Avanse Financial Services contact number.
Confused about the responsibilities of a co-signer? Read more about the role of a co-signer in education loans.
Avanse Education Loan Interest Rate
Avanse bank offers floating interest rates to ensure you always get a competitive deal. The interest on your loan is calculated using the formula:
Interest Rate = Avanse Base Rate + Spread
1. Base Rate: Currently fixed at 14.55% (effective from December 1, 2024)
2.Spread: This varies based on your credit profile, course type, and other eligibility factors.
The interest is applied on a simple interest basis with monthly rests, meaning your interest calculation is updated every month. Since the spread can change periodically, your final rate may differ during the loan tenure.
How to Contact Avanse for an Education Loan?
If you need assistance with Avanse education loans, here are the best ways to reach them:
1. Email Support
Write to Avanse at wecare@avanse.com with your details, loan requirements, and contact information. Their team will respond with tailored guidance.
2. Online Application Form
Visit Avanse’s official website and fill the online form. Once submitted, Avanse will review your profile and connect with you for the next steps. You can
3. Branch Visits
Prefer in-person assistance? Visit your nearest Avanse branch. The head office is in Mumbai, with branches in major cities like Bangalore, Delhi, Ahmedabad, Chennai, Hyderabad, and Chandigarh.
What Does Avanse Overseas Education Loan Cover?
Avanse offers comprehensive financial coverage for students planning to study abroad. Here’s what you can expect:
1. Full Tuition Fee Support: Up to 100% of your tuition fees as per the official amount charged by your university or institute.
2. Living Expenses: Funding for up to 75% of your living costs, which may include accommodation, food, and essentials like books, a laptop, and study equipment. (Note: These expenses should not exceed 20% of your tuition fee.)
3. Deposits and Security Charges: Coverage for building funds, caution deposits, or refundable deposits up to 10% of the tuition fee, provided you have valid receipts or bills from the institution.
4. Travel Costs: Assistance of up to ₹75,000 towards airfare or travel expenses for students heading abroad.
Avanse Loan Repayment Options
Avanse provides multiple repayment plans to reduce the burden on students during their course:
1. EMI during the course- begin repaying while studying
2. Step-up repayment- EMIs increase gradually as income grows post-graduation
3. EMI after moratorium- start repayment 6 months after completing studies or 3 months after securing a job
4. Partial interest servicing- pay only part of the interest during the course
Repayment Tenure: Minimum 1 year, maximum 17 years (including study + grace period).
Not sure whether you need a co-borrower or co-signer? Understand the difference in our article on co-borrower vs co-signer in education loans.
Pros and Cons of Avanse Education Loan
A quick look at the advantages and drawbacks of choosing Avanse for your education financing needs.
Advantages:
1. High Loan Amounts: No strict upper limit on the sanctioned amount, provided you meet eligibility criteria.
2. Wide Coverage of Courses: Supports a variety of programs, both in India and abroad, including niche and professional courses.
3. Faster Loan Approval: Digital processes enable loan approval within 3–7 working days.
4. Flexible Repayment Options: Customised EMI structures and moratorium periods are available.
5. Unsecured Loan Options: Collateral-free loans for smaller amounts, making it easier for students without assets.
Disadvantages:
1. Higher Interest Rates: Typically 11.5% to 16%, which is above the rates offered by public sector banks.
2. Processing Charges: Up to 2% of the sanctioned amount, which can increase the upfront cost.
3. Floating Interest Rates: Rates are linked to Avanse’s base rate, so your EMI can fluctuate over time.
4. Additional Penalties: Extra charges for late payments, cheque bounces, and related issues.
Can You Refinance an Avanse Education Loan from Abroad? Reddit Users Share Experiences
Reddit User in r/StudentLoans asked:
"I’m currently in the U.S. and have an education loan from Avanse (India) with a 13.4% interest rate. My full EMIs (₹1L/month) are starting soon, and I’m looking at refinance options, either with Indian banks or U.S. lenders that support refinancing international education loans. Has anyone successfully refinanced an Avanse loan, used a U.S. bank/NBFC, or gone through WeMakeScholars for a balance transfer while abroad?"
Insight:
- Refinancing Avanse loans while living abroad can be tricky since most Indian banks require the applicant (and co-borrower) to be in India for documentation.
- NBFCs like Avanse allow balance transfers, but rates usually remain in the 11–14% range unless strong collateral is offered.
- U.S.-based refinancing options (like MPOWER or Prodigy Finance) cater only to specific universities and often don’t support refinancing Indian NBFC loans.
- Some students explore WeMakeScholars for balance transfers, but success depends heavily on profile strength, income proof, and co-borrower stability in India.
What Do We Infer?
- Refinancing with U.S. lenders is often not possible for Avanse loans.
- The best options are either balance transfer with an Indian bank (if eligible for lower rates) or renegotiating terms directly with Avanse.
- Students abroad should plan refinancing before leaving India for smoother execution.
Tip:
If you’re considering refinancing, compare Indian public sector banks (lower rates but slower process) with NBFCs (faster but costlier). Always factor in forex fluctuations and repayment timelines before committing.
Avanse vs Public Sector Banks – Key Differences
Compare Avanse with public sector banks to see which lender better suits your education loan requirements.
Funding higher education doesn’t have to be overwhelming when the right financial partner is on your side. Avanse Finance Education Loan brings flexibility and convenience, making it easier for students to access world-class education without financial roadblocks.
However, before committing, compare all your options, especially if you’re looking for collateral-free loans, customised repayment, and zero processing charges. That’s where Propelld comes in.
Propelld offers digital-first, student-friendly financing solutions with income-based repayment models, study-now-pay-later plans, and fast approvals, tailored for courses across 550+ partner institutions in India.
Ready to make your education dream a reality with flexible, stress-free financing?
Apply with Propelld today and experience the fastest, most student-friendly education financing in India- simple, transparent funding.
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